Business Breakfast: Russia Practice Report Schaeffler · Schaeffler brought in 2018 as the...
Transcript of Business Breakfast: Russia Practice Report Schaeffler · Schaeffler brought in 2018 as the...
Business Breakfast: RussiaPractice Report Schaeffler
Prof. Dr. Rainer LindnerCEO Central & Eastern Europe / Middle East & Africa, Schaeffler Group
Hamburg November 14, 2018
Business Breakfast Russia
19.11.2018
More than
92,000employees worldwide 2)
More than 170 locations in 50 countries
1.1 m tons of processed steel p.a.
Strong customer basewith approx.
11,800 customers
1) Before one-off effects2) As at June 30, 2018
Strong organic growth
5% p.a.Ø Sales growth2006-2017
Nearly
2,400patents filed in 2017
High quality of results
11.3% EBIT margin in 20171)
Far more than
10,000different products
72 plants
18 R&D centers
Schaeffler in global facts – Strong starting point
2 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group
Business Breakfast Russia
19.11.2018
Customer proximity – global plants and R&D centers
3 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group
1 In Europe
1) The regions represent the regional structure of the Schaeffler Group.
Regions 1)
R&D centers
Plants
Europe
10
45
Americas
5
14
Greater China
1
8
Asia/Pacific
2
5
South Africa
Port Elizabeth
Japan
Yokohama
Russia
Ulyanovsk
China
Anting
Nanjing
Suzhou
Taicang (4)
Yinchuan (2)
Vietnam
Biên Hòa City
Thailand
Chonburi
South Korea
Ansan
Changwon
Jeonju
India
Hosur
Pune
Vadodara
Savli
Brazil
Sorocaba (2)
1
Canada
Stratford (2)
USA
Cheraw (2)
Danbury
Fort Mill (2)
Joplin
Spartanburg
Troy
Wooster
Mexico
Puebla
Irapuato
United Kingdom
Llanelli
Plymouth
Sheffield
Italy
Momo
Portugal
Caldas da Rainha
Spain
Elgoibar
Hungary
Debrecen
Szombathely
Romania
Braşov
Slovakia
KysuckéNové Mesto
Skalica
Czech Republic
Lanškroun
Svitavy
Germany
Bühl
Eltmann
Gunzenhausen
Hamm/Sieg
Herzogenaurach
Hirschaid
Höchstadt
Homburg (3)
Ingolstadt
Kaltennordheim
Lahr
Luckenwalde
Morbach
Schweinfurt (2)
Steinhagen
Suhl
Unna
Wuppertal
Austria
Berndorf-St. Veit
France
Calais
Chevilly
Haguenau (2)
Moscow
Sankt-Petersburg
Ulyanovsk
Togliatti
Lipezk
Kasan
Ekaterinburg
Novosibirsk
Irkutsk
The development of the Schaeffler Group in Russia – Important milestones
1992
Opening of the FAG
Rep Office in
Moscow
1995
Opening of
INA Rep. Office
in Moscow
1996
Opening of the
LuK Rep. Office
in Moscow
2006
Integration of
LuK, INA, FAG
as Schaeffler Russland
2009
Sales in Roubles
started
2013
Opening of the Schaeffler
Warehouse in Moscow Area
2014
Opening of the
plant in
Ulyanovsk
2017
Opening of the new office
of Schaeffler Russland in the
House of German Economy
Business Breakfast Russia
19.11.2018 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group4
Local Footprint
Moscow: Russland-Hub and warehouse
Ulyanowsk: Production plant with over 100 employees.
Rep. offices: St. Petersburg, Lipezk, Krasnodar, Togliatti, Kazan, Ekaterinburg, Nowosibirsk, Irkutsk
Over 200 employees in Russia
Industrial Projects Automotive Projects
There is inside! – reference projects in Russia
19.11.2018 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group5
Business Breakfast
Gazelle Next
Project „Cortège“
Lada Vesta
Moscow Central Ring waggons
Siemens Desiro „Lastochka“
Bridge in St. Petersburg
Drilling rig „Arctica“
Economic and political environment
Russia's economy is growing moderately
The US sanctions are influencing the economy and making it more difficult to finance new projects
Although German-Russian trade rose by 20 percent in 2017
German companies supply machinery and equipment and localize their production
Ruble devaluation makes imports from more expensive
Doing business in Russia: facts and overview
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Business Breakfast
Market trends
Automotive: Strong vehicle production volume growth over last 2 years; Automotive OEMs increase their production footprint in Russia
E-Mobility: Development of electric and hybrid vehicles is progressing
Localization: Russian government is motivating companies to increaselocalization rate, creation of special economic zones
Digitalization/smart cities: St. Petersburg is digitizing urban transport, energy supply, construction and administration. Siemens plays a leading role.
Wind: State subsidized from 3.6 GW to 2024
Rail: Increase production to 800 locomotives, 450 passenger and 42,000 freight cars
Eurasian Economic Union forms industrial network
Russian governmental modernization program 2018-2024: Investment of 83 bn EUR; 11 federal projects of modernization and reconstruction of infrastructure (rail, transport, sea ports, power and energy)
Automobile assembly plant near Moscow
Investment $ 250 mn
Construction until 2019
Engine plant in St. Petersburg region
Investment € 351 mn
Construction will start 2018
Automobile production plant in Kaliningrad region
Construction 2018-2021
Automotive OEMs increase their production footprint in Russia
Automobile production plant in Kaluga region
Productionsince 2007
The strategic goal is to increase the local share of components by 2025 70-75% for passenger cars and 75-85% for commercial vehicles. Above all, suppliers are looking for suppliers for the areas of engine, transmission and electronic components for vehicle architecture.
Sales of new passenger cars and light commercial vehicles in Russia increased by 12% in 2017 to 1,595,737 vehicles; production increased by 21% to 1,355,000. The market leader is the GAZ Group, ahead of UAZ and Volkswagen.
Russia's car market is expected to grow by 11% to 1.64 million cars in 2018. Forecast: In 2022 2.22 million cars will be sold.
Volkswagen Group increased car production in Russia 2017 by 14%
BMW plans to build a factory for CKD assembly in the Kaliningrad area in 2018 and plans to invest to produce its 3 Series, 5 Series, 7 Series and X Series for the Russian market entirely locally with local components. In October 2017 BMW opened its largest Russian logistics center for spare parts in the Moscow region.
Daimler is building a factory in the Moscow region for the production of off-road vehicles and sedans of the G and E class. Daimler is currently looking for automotive parts suppliers. From 2019, the first vehicles to roll off the line.
Hyundai Motor plans to launch an engine plant in St. Petersburg in 2021.
AvtoVAZ, part of Renault-Nissan-Mitsubishi Alliance has grown by 15% in 2017 – above the market; growth in the range of 15-20% is expected by AvtoVAZ again in 2018; AvtoVAZ plans to open a newplant in Kazakhstan by 2021
PSA Group plans to build an engine plant in Kaluga
Example Russian Automotive industry: positive trendsBusiness Breakfast
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Key success in growing markets: technology. 3 Examples
19.11.2018 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group8
Business Breakfast
Schaeffler Mobility conceptsand e-mobility
▪ Schaeffler Mover▪ Schaeffler Bio Hybrid▪ E-Mobility
▪ Link
Windpower
▪ New technology▪ Service solution▪ Condition monitoring
Link
▪ Schaeffler supports its customers
▪ throughout all levels of digital value creation
▪ from the sensor to the cloud.
Railway digitalized condition monitoring
Doing business in Russia: key success factors
Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group8
Business Breakfast
Cooperation with the Russian Goverment and public institutions
Factory in Ulyanovsk opened in 2014, localization is the key
Schaeffler produces clutches and shifting systems for the automotive industry and does reconditioning of the industrial bearings
Excellent cooperation with the government of Ulyanovsk which issupporting Schaeffler by bringing in new projects to Ulyanovsk, incl. subsidies, infrastructure, lobbying at federal level
Industrial assembly agreement with the Ministry of Economy tosupport Schaeffler (local content) 2017/2018
Signing of a roadmap together with the German-Russian Chamber of Commerce and the Agency for the Promotion of Small and Medium-sized Enterprises at the St. Petersburg Economic Forum
Schaeffler brought in 2018 as the co-initiator of “PotsdamerBegegnungen” together 60 high-ranking representatives from the fields of business, politics, science, and culture in Berlin
Memorandum of Understanding with Russian Direct Investment Fund signed in October 2018
19.11.2018 Business Breakfast Russia | Prof. Dr. Rainer Lindner, CEO Central and Eastern Europe / Middle East and Africa | Schaeffler Group10